Morningstar Rating

ETF Research and Analysis

by Alex Bryan
Suitability
Vanguard Growth ETF VUG offers low-cost exposure to the faster-growing and more-expensive half of the U.S. large-cap market. While large-cap stocks tend to grow more slowly than their smaller counterparts, these companies   Read more 

Bull Case

This is one of the cheapest growth funds available.
Quality companies anchor the portfolio.
The valuation gap between U.S large-cap value and growth stocks, as measured by Morningstar's price/fair value estimates, is currently low.  Read more 

Bear Case

Value stocks have consistently outperformed growth stocks over long time horizons.
Growth stocks rely on faster growth to justify their richer valuations. If growth fails to materialize, their multiples have further to fall.
The fund does not offer meaningful diversification benefits to investors who already have broad exposure to large-cap U.S. stocks.  Read more 

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